FBLA International/Global Business Practice Test

Issuing shares is considered a method of financing a business because it is a way for a company to raise capital by selling ownership stakes to investors. When a business issues shares, it essentially allows investors to buy a portion of the company, which can provide immediate funds that can be used for various purposes, such as expanding operations, investing in new projects, or paying off debt. This method not only provides the necessary capital but also can enhance the company’s credibility and market presence.

Employing staff, conducting audits, and providing training are important operational functions within a business but do not directly relate to financing. Employing staff incurs costs rather than raises capital; conducting audits focuses on financial compliance and accuracy, and providing training is aimed at enhancing employee skills. These activities support the business's functioning and effectiveness but do not constitute methods of financing.